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Article: An economic order quantity model with a random planning horizon.
- Article from:
- Engineering Economist
- Article date:
- September 22, 1993
- Author:
CopyrightCOPYRIGHT 1993 Institute of Industrial Engineers, Inc. (IIE). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
There have been extensive discussions in the literature of extensions of the basic Economic Order Quantity (EOQ) Model to improve the practicality of the model. See, for example, Carlson and Rousseau |1~, Cheng |2~, etc. One of the important streams of extensions is to properly recognize the time value of money in determining the optimal order quantity. Trippi and Lewin |8~ adopted the discounted cash flows (DCF) approach for the analysis of the basic EOQ model. Kim et al. |7~ extended Trippi and Lewin's work by applying the DCF approach to various inventory systems. Chung |3~ studied the DCF approach for the analysis of the basic EOQ model in the ...